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Legal Environment

Chapter 16

TermDefinition
Agency A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).
Agent A person authorized by another to act for or in place of him or her.
Authorization Card A card signed by an employee that gives a union permission to act on his or her behalf in negotiations with management.
Closed Shop A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.
Collective Bargaining The process by which labor and management negotiate the terms and conditions of employment.
Disclosed Principal A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
Employment at Will A common law doctrine under which either party may terminate an employment relationship at any time for any reason.
I-551 Alien Registration Receipt A document, commonly known as a “green card,” that shows that a foreign-born individual has been lawfully admitted for permanent residency in the United States.
I-9 Verification The process of verifying the employment eligibility and identity of a new worker.
Independent Contractor One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
Lockout An employer’s act of shutting down the business to prevent employees from working.
Minimum Wage The lowest hourly wage that an employer may pay a worker.
Partially Disclosed Principal A principal whose identity is unknown by a third party, but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.
Principal A person who, by agreement or otherwise, authorizes an agent to act on his or her behalf in such a way that the acts of the agent become binding on the principal.
Ratification The act of accepting and giving legal force to an obligation that previously was not enforceable.
Respondeat Superior A principle of law whereby a principal or an employer is held liable for the wrongful acts committed by agents or employees acting within the scope of their agency or employment.
Right-to-Work Law A state law providing that employees may not be required to join a union as a condition of retaining employment.
Strike An action undertaken by unionized workers when collective bargaining fails. The workers leave their jobs, refuse to work, and (typically) picket the employer’s workplace.
Undisclosed Principal A principal whose identity is unknown by a third person, and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.
Union Shop A firm that requires all workers, once employed, to become union members within a specified period of time as a condition of their continued employment.
Vesting The creation of an absolute or unconditional right or power.
Vicarious Liability Legal responsibility placed on one person for the acts of another.
Workers’ Compensation Laws State statutes establishing an administrative procedure for compensating workers for injuries that arise out of—or in the course of—their employment, regardless of fault.
Created by: sfrase
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